Question
You buy ten (10) S&P500 index December futures contracts. Currently, S&P500 futures price is $3,000. The contract size is 50 and initial margin requirement is
You buy ten (10) S&P500 index December futures contracts. Currently, S&P500 futures price is $3,000. The contract size is 50 and initial margin requirement is 6%.
A month later, futures price increases 2.1%. Find the rate of return.
(Report in percentage up to 2 decimal points. If your answer is 12.345%, then enter 12.35 instead of 0.1234.) (margin for error: +/- 1%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the rate of return we need to consider the change in the value of the futures contr...
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Step: 2
Step: 3
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
